If you are looking to strengthen your portfolio after the market selloff with some ASX 200 blue chip shares, then read on.
That's because listed below are two high-quality blue chips that analysts think could be top picks for investors right now.
Here's what they are saying about them:
Transurban Group (ASX: TCL)
When it comes to steady, reliable earnings, Transurban is hard to beat. As one of the world's largest toll road operators, it owns critical infrastructure across Australia and North America.
Toll roads are essential assets with built-in pricing power, meaning Transurban can increase fees over time. This provides a strong and growing income stream, making it an ideal investment for those seeking passive income. With major projects underway and urban congestion showing no signs of slowing, Transurban could be an unstoppable force in the infrastructure space.
Bell Potter is very positive on the company's outlook and has named it on its best ideas list this month. It said:
We believe the current inflationary environment is favourable for TCL given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 blue chip share that could be a buy is Wesfarmers. It is arguably the backbone of Australian retail, owning brands like Bunnings, Kmart, and Officeworks. But it's far more than just a retailer. The company also has interests in chemicals, industrials, healthcare, and lithium, making it a well-diversified conglomerate.
Wesfarmers' secret to success is its disciplined approach to capital allocation. The company has a history of making smart acquisitions and divestments, ensuring that shareholders benefit. With steady growth, defensive earnings, and exposure to multiple industries, Wesfarmers could be a fantastic blue chip to buy.
Goldman Sachs certainly believe that is the case. It recently named several reasons why it thinks it would be a stock to buy. The broker said:
We have a buy recommendation for WES based on 1) Bunnings market share gain against soft operating backdrop 2) Bunnings long term growth options in sales/sqm and Retail Media. 3) Portfolio management sees Lithium/Health scaling to deliver double digit EBIT growth in FY26. WES in our view is undervalued relative to these growth prospects. We are Buy rated on the stock.
